Good workplace practices and their impacts David Pardey, Senior Manager Research & Policy The Institute of Leadership & Management

A brief review of management 4.5m managers in the UK; estimate 375,000 in Scotland 1 Approx. 2/3 male: 1/3 female, but: » Majority of new managers are women and are likely to have a degree » Majority of established managers are men and are unlikely to have a degree ( 2, 3 ) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Less than a year 1-5 years 6-10 years years years 31 – 40 years Over 40 years MaleFemale

Whats so good about being a manager 2 ? 1.Being able to make a difference 44% 2.Making change happen 35% 3.Developing others skills 32% 4.The variety of challenges 36% 5.Able to influence people or decisions 29% 6.Helping my team achieve their goals 32% 7.Increased financial benefits 31% 8.The potential for career development 21% 9.Increased level of responsibility 18% 10.Status 11%

Four good workplace practices 1.Organisation 2.Systems 3.Management 4.Leadership

Good organisation practices Train managers Better to train all managers a little, than a few managers a lot » Good management practice is strongly associated with better productivity, profitability, Tobins Q (asset value ratio), and sales growth. » Poor management practice survives through lack of product market competition; firm age & few new market entrants using better management techniques; and labour market regulation. 4 UK managers lag their colleagues in the US, France and Germany in terms of competence and experience 5 better-managed firms also have a more highly educated workforce, among managers and non-managers alike 6 General ability and variety of experience used to identify future leaders, & in-house training favoured for their development (7,8,9)

Good systems practices Measure what matters Most improvement methodologies emphasise the value of measurement and analysis (eg PDCA, Ishikawas 7 tools & techniques, Six Sigma/DMAIC, etc), and of benchmarking against the best Effective skills utilisation means: » measuring productivity (efficiency of resource utilisation and product/service quality) » comparing with best practice » using appropriate improvement strategies to raise standards Far more prevalent in manufacturing than service industries

Good management practices From supervision to development Change focus of management role from supervising performance to improving performance through development (9,10) » Better performance management systems (continuous, people- not system-driven) » Use workplace coaching and mentoring » Culture of everyday learning Productivity comparison GBDE Labour DE/GB Ave. bed nights/ house-keeping employee % Ave. occupied room/ receptionist %

Good leadership practices Build trust Trust in co-workers and management is a predictor of: » an employees preference for teamwork, » increased engagement, and » lowered employee turnover (11,12) Trust is positively related to task performance and negatively related to stress 13 Trust can: » reduce transactional costs (by obviating the need for excessive controls and regulation), and » promote positive relationships 14 Trust is the product of three broad personal attributes that all managers need to foster: » Ability (understanding their own role and the role of those they lead) » Integrity (honesty and consistency) » Benevolence (openness and fairness) 15

References 1.Office of National Statistics (various) 2.What makes managers tick? ILM, 2008 (unpublished) 3.Thomson, A., Mabey, C. Storey, J. Gray, C. & Iles, P Changing Patterns of Management Development Blackwell: Bloom N, et al Management Practices Across Firms and Nations Centre for Economic Performance (LSE) & McKinsey & Co: June DTI ECONOMICS PAPER NO.17UK Productivity and Competitiveness Indicators March, Bloom N, et al Management Practice & Productivity: Why they matter Centre for Economic Performance (LSE) & McKinsey & Co: July Future Leaders ILM, due October Newell H Who will follow the leader? Managers perceptions of management development activities: an international comparison SKOPE Research Paper 51, Autumn Tamkin P et al The Comparative Capability of UK Managers Institute for Employment Studies for Skills for Business, April Prais, Jarvis & Wagner Productivity and vocational skills in services in Britain and Germany: Hotels National Institute Economic Review, November Kiffin-Petersen S., Cordery, J., February 2003, Trust, Individualism and Job Characteristics as Predictors of Employee Preference for Teamwork, International Journal of Human Resource Management, Vol. 14 Issue 1, p Ferres N., Connell J., Travaglione A., June 2004, Co-worker Trust as a Social Catalyst for Constructive Employee Attitudes, Journal of Managerial Psychology, Vol. 19 Issue 6, p Costa A.C., Roe R.A., Taillieu T., September 2001, Trust within Teams: The Relation with Performance Effectiveness, European Journal of Work and Organizational Psychology, Vol. 10, Issue 3, p Kramer R.M., 1999, Trust and Distrust in Organizations: Emerging Perspectives and Enduring Questions, Annual Review of Psychology, 50, p Index of Leadership Trust 09 ILM September 2009